Transportation Capital ProgramFiscal Year 2006

Introduction

The Transportation Capital Program for Fiscal Year 2006 describes all the capital investments planned by the New
Jersey Department of Transportation (NJDOT) and NJ TRANSIT for the fiscal year beginning on July 1, 2005. This
program is the product of extensive, ongoing participation by the state’s three metropolitan planning organizations
(MPOs) and a wide variety of stakeholders. A companion document, “Capital Investment Strategy, Fiscal Years 2006-2010,”
puts these investments in the context of longer-term goals for improving New Jersey’s transportation system. The
capital program pursues the goals set out in the capital investment strategy, despite the fact that the State’s
Transportation Trust Fund, unless replenished, will be exhausted at the end of Fiscal Year 2006.

This $2.7 billion program implements NJDOT’s “Smart Growth” and “Fix-it-First” policies and will provide a significant
stimulus to the state’s economy.

NJDOT’s program is a balanced investment plan which advances the objectives of our capital investment strategy.
The program:

Continues our commitment to the safety of motorists and pedestrians (“Safety First”)

Continues major investments in bridge and roadway preservation

Promotes Smart Growth through targeted investments, including developing new ways of fighting congestion
through new initiatives

Begins to accelerate the project delivery process through the new Hyper-Build initiative

NJ TRANSIT’s $1.1 billion Fiscal Year 2006 Capital Program continues the agency’s “Back to Basics” approach;
investing in core transit infrastructure to maintain the State’s rail, bus and light rail system at a State of Good
Repair. The Program provides $311 million in debt service payments for prior rolling stock purchases and light rail
expansion projects; $356 million to subsidize operations; and $414 million targeted at fundamental capital needs.
The program also includes $66 million in federal and other funds earmarked for specific projects and programs
administered by NJ TRANSIT. The Fiscal Year 2006 NJ TRANSIT Capital Program will continue to support the ongoing
effort to bring the state’s transit system to a state of good repair, ensuring safe, reliable and sustainable transit
service for the state’s residents.

Program Highlights

The program invests about $390 million in improvements to New Jersey’s aging highway bridges. New Jersey will
take advantage, for the first time, of a federal innovative financing program (“GARVEEs”) to fund one of the largest
bridge projects in the state’s history, the replacement of the Route 52 viaduct connecting Ocean City and Somers Point.
Without the GARVEE option, NJDOT would not have the means to move forward with this project in Fiscal Year 2006. A
total of 78 bridges are funded for some phase of work, in addition to projects in early “study and development”
stages.

The program provides significant funding for highway pavement resurfacing while continuing funding for all elements
of NJDOT’s new pavement management program, including highway rehabilitation and preventive maintenance projects.

Funding for safety programs is maintained at a high level. Key programs funded under NJDOT’s Safety First
initiative include the Median Cross-over Crash Prevention program, Safe Corridors (implementing improvements identified
by Safety Impact Teams in high-hazard corridors), the Safe Streets to Schools program, and the low-cost Intersection
Improvements program.

The program funds a balanced attack on highway congestion, with increased investment in highway operational
improvements, which focus on relieving high-congestion bottlenecks. The Emergency Service Patrol program is expanded
and a new program is funded to improve the functioning of traffic signals. Funding for highway capacity increase
projects (major widenings and construction of new highways) is limited to less than 3% of the total program in order
to provide funding for lower-cost congestion relief projects and Fix-it-First projects.

$88 million will be invested in Rail Station improvements at Newark Broad Station, Ridgewood Station, Madison
Station, and Morristown Station. All these station accessibility improvements are required to keep NJ TRANSIT in
compliance with the Americans with Disabilities Act. Improvements will also be continued with the construction of
the Trenton Station Rehabilitation, construction of high level-platforms at South Amboy Rail Station, and
reconstruction of platforms at Metropark Station and Woodbridge Stations.

Regarding state of good repair and reliability, the program budget allots $205 million to replace up to 13
miles of track, over 50,000 new rail ties, improve as many as eight culverts, and continue installation of the
automatic train control and positive train stop rail safety system. Funding is provided for engineering assistance
to overhaul 148 Comet III and IV rail cars, replace 230 Arrow III rail cars and purchase of a rail switcher
locomotive. Also provided is funding for the mid-life overhaul of transit buses and bus/LRT infrastructure
improvements systemwide. The program includes funding for bridge and tunnel inspections, security improvements,
Federal Railroad Administration mandates, and Americans-with-Disabilities-Act station improvements.

The FY06 program attacks congestion through providing over $15.6 million for park-and-ride projects.
In the past year, NJ TRANSIT has opened over 6,000 new spaces on the River LINE (3,300), and will open an additional
1,500 spaces at Montclair State University and 1,260 spaces at Route 17 in Ramsey. The NJ TRANSIT Fiscal Year 2006
Capital Program includes funding to design and construct another 3,000 new spaces at Route 23, Wayne Park and Ride,
Edison Station, Rahway Station, and Howard Boulevard.

NJ TRANSIT will also be moving forward on other critical initiatives to meet forecasted market growth and
travel demand over the next decade in New Jersey and the surrounding region, including a new trans-Hudson tunnel,
the Meadowlands rail link and other planned investments to expand core capacity of the railroad to allow for more
frequent service. Stations and terminals will be improved and modernized and rail and bus equipment will be
overhauled or replaced. More parking and improved access are also key elements of the makeover, as is better
use of technology to produce a more rapid transit-like fare collection system that is faster and easier to use.

Financing Our Transportation Needs

The Transportation Capital Program for Fiscal Year 2006 is funded at a level of $2.7 billion, including $1.6
billion programmed for use by NJDOT and $1.1 billion by NJ TRANSIT. About 45 percent of the total program
($1.2 billion) is funded by the New Jersey Transportation Trust Fund. For planning purposes, the capital program
assumes that this funding level will continue. However, it is important to note that without reauthorization and
replenishment of the Trust Fund, state funding will not continue beyond Fiscal Year 2006. The absence of state
funding will also jeopardize our ability to draw down federal funding, which requires a state “match.” As the
Capital Investment Strategy report shows in detail, even the current funding level falls far short of meeting New
Jersey’s documented needs for infrastructure renewal, transit extensions, local aid, and other pressing demands.